Will the Eurozone Emerge From Their Economic Crisis?
Indeed, I've always said that people who are broke, living on bare-bones, or are at their financial end of the rope often make very poor choices for their future, and are apt to make their situation much worse.
I'd say the same thing goes for countries faced with the same type of dilemma.
They make the wrong short-term decisions, and leave themselves in a worsened situation.
A case in point might be the Eurozone as they've attempted to emerge from this economic crisis, and yet they continue making one mistake after another culminating in what could be a disastrous decade of deleveraging.
Okay so, let's talk.
On December 7, 2012 the Wall Street Journal had an article titled; "Europe's Bank Cuts 2012 Forecast - ECB Leaves Rates Flat, Delivers Gloomy GDP Estimate As Euro Nation Struggle with Next Steps," by Brian Blackstone.
In the article there was a graph showing that the forecast by the ECB for 2013 was about 1.
1% GDP growth.
Obviously, that is within the margin of error, and they are basically saying there will be no growth, and that nothing will change.
However, if nothing changes then they can't get out of their problems through growth, and therefore they have to keep up with their austerity programs.
Unfortunately, the people will not allow that, and they will riot throughout Europe, unemployment will continue, and as one senior economic advisor noted in the article "the euro zone may be headed for a lost decade," which is also my assessment here.
Meanwhile in the same edition of the Wall Street Journal there was another article by Max Colchester titled "EU Seeks to Crack down on Tax Havens," which showed it would go after companies like Microsoft, Google, Amazon, Starbucks, and other companies to seek taxes from their corporate earnings.
The reality is that just as class warfare never works when you blame all the rich people and try to tax them into oblivion as you run out of other people's money to spend in your socialist socioeconomic strategy, going after foreign companies investing in your markets, and doing business in trade is not a long-term strategy either.
It will be met with similar restrictions from reciprocating nations, and could initiate a trade war with the United States for instance.
If the US turns its back on Europe, that can't be good for Europe's future either, and the United States right now has a good reason to do that because it has its own problems to worry about.
After all, we also have a socialist-leaning leadership running the White House, and they are busy spending more than they take-in in tax revenue also.
They are looking for more money just as the EU is.
Indeed, I'd like you to please consider all this and think on it from an economic philosophical perspective.
I'd say the same thing goes for countries faced with the same type of dilemma.
They make the wrong short-term decisions, and leave themselves in a worsened situation.
A case in point might be the Eurozone as they've attempted to emerge from this economic crisis, and yet they continue making one mistake after another culminating in what could be a disastrous decade of deleveraging.
Okay so, let's talk.
On December 7, 2012 the Wall Street Journal had an article titled; "Europe's Bank Cuts 2012 Forecast - ECB Leaves Rates Flat, Delivers Gloomy GDP Estimate As Euro Nation Struggle with Next Steps," by Brian Blackstone.
In the article there was a graph showing that the forecast by the ECB for 2013 was about 1.
1% GDP growth.
Obviously, that is within the margin of error, and they are basically saying there will be no growth, and that nothing will change.
However, if nothing changes then they can't get out of their problems through growth, and therefore they have to keep up with their austerity programs.
Unfortunately, the people will not allow that, and they will riot throughout Europe, unemployment will continue, and as one senior economic advisor noted in the article "the euro zone may be headed for a lost decade," which is also my assessment here.
Meanwhile in the same edition of the Wall Street Journal there was another article by Max Colchester titled "EU Seeks to Crack down on Tax Havens," which showed it would go after companies like Microsoft, Google, Amazon, Starbucks, and other companies to seek taxes from their corporate earnings.
The reality is that just as class warfare never works when you blame all the rich people and try to tax them into oblivion as you run out of other people's money to spend in your socialist socioeconomic strategy, going after foreign companies investing in your markets, and doing business in trade is not a long-term strategy either.
It will be met with similar restrictions from reciprocating nations, and could initiate a trade war with the United States for instance.
If the US turns its back on Europe, that can't be good for Europe's future either, and the United States right now has a good reason to do that because it has its own problems to worry about.
After all, we also have a socialist-leaning leadership running the White House, and they are busy spending more than they take-in in tax revenue also.
They are looking for more money just as the EU is.
Indeed, I'd like you to please consider all this and think on it from an economic philosophical perspective.
